TAX INCREASE ALL BUT ASSURED BY DOCTORS' NEW INITIATIVE
SACRAMENTO, Calif., March 11 /PRNewswire/ -- The following is being released by Braun Ketchum Public Relations on behalf of the National Federation of Independent Business (NFIB)/California:
Californians will face potential tax increases in the hundreds of millions of dollars if the "Basic Health Care Coverage," initiative by the California Medical Association (CMA) initiative, becomes law, Martyn Hopper, state director of the National Federation of Independent Business (NFIB)/California, said today.
The legislative analyst's summary, released today after the attorney general issued a title and summary for the proposal, revealed that it will cost California hundreds of millions of dollars in potential revenue losses.
"On the one hand, the measure's provisions would increase the cost of doing business within the state for a large number of employers...," Legislative Analyst Elizabeth Hill concluded. "...This would result in a lower level of activity within the state ... There could be losses of general fund tax revenue of up to several hundred million dollars initially."
Said Hopper: "When the CMA launched its initiative, it promised big savings. The legislative analyst has put the lie to this claim. In fact, there are huge revenue losses that can only be made up by tax increases or cuts in essential services. We shouldn't be fooled. The CMA's "Basic Health Care Coverage" initiative is anything but affordable."
NFIB/California, with 44,000 members, is the largest small-business organization in the state. Nationally, NFIB has 500,000 members and offices in all 50 states.
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/CONTACT: Martyn Hopper, state director of the NFIB/California, 916-448-9904; or Alan Maltun of Braun Ketchum, 213-385-3481, for NFIB/California/ CO: National Federation of Independent Business (NFIB)/California ST: California IN: SU:

JL-SF -- LA010 -- 7557 03/11/92 17:58 EST

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